Allowed

Karnataka Bank Limited v. M/S Hari Om Trading Company and Others

DRT16 Jun 2025OA/162/2025

Case brief

AI extract

What is this about?

Original application filed by Karnataka Bank Limited for recovery of Rs. 1.03 crore against borrowers who failed to repay car, overdraft, and term loans. Tribunal allowed the application, granted uniform simple interest, and issued a recovery certificate for sale of mortgaged/hypothecated assets.

What did the court decide?

Recovery certificate issued for Rs. 1.03 crore plus costs and simple interest at 8% p.a.

Karnataka Bank Limited versus M/S Hari Om Trading Company and… — Banking and Recovery | DRT (2025)

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DEBTS RECOVERY TRIBUNAL-III, CHANDIGARH

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ORIGINAL APPLICATION NO.162/2025

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PRESIDED OVER BYMRIDULESH KUMAR SINGH

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DATE OF INSTITUTION: 11.02.2025

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DATE OF DECISION: 16.06.2025

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Karnataka Bank Limited, a Banking Company registered under the Companies Act, 1913 having its Registered office at Post Box No.599, Mahaveer Circle, Kankanady, Mangaluru-575002, and a branch office among others at Ludhiana at Sona Complex, B-15/179, Ist Floor, Nirankari Kucha No.4, G T Road, Miller Ganj, Ludhiana, Punjab 141003 through its Authorized officer and duly Constituted Attorney Holder Sh. Parminder Kumar, presently Posted as Chief Manager, at Ludhiana Miller Ganj, Branch.

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……..Applicant Versus

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M/s Hari Om Trading Co, represented by its Partners, Shri Gaurav Arora, Smt. Kamlesh Rani. Registered Address: Plot No. 12/11, 1864, Block-B, Near Midda Chowk, Jawahar Nagar, Ludhiana (Punjab)- 141002.

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Shri Gaurav Arora, S/o Late Shri Hari Om Arora, R/o House No. 3402/17-B, Gurcharan Park, Near Kochar Market, Gandhi Colony, Model Town, Ludhiana (Punjab)- 141002.

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Smt. Kamlesh Rani, W/o Late Shri Hari Om Arora, R/o House No. 3402/17-B, Gurcharan Park, Near Kochar Market, Gandhi Colony, Model Town, Ludhiana (Punjab)- 141002

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Shri Amit Arora, S/o Shri Late Hari Om Arora, R/o House No.3402/17-B, Gurcharan Park, Near Kochar Market, Gandhi Colony, Model Town, Ludhiana (Punjab)- 141002

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………. Defendants

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Advocates:

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Argued by Ms. Parmeet Kaur, Advocate proxy for Sh. S.K. Dhir, Advocate for Applicant Defendants are ex-parte

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2 OA NO.162-2025 KARNATAKA BANK LIMITED VS M/S HARI OM TRADING COMPANY AND OTHERS

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FINAL ORDER

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Present Original Application was instituted by the applicant under Section 19 of the Recovery of Debts Due to Banks and Financial Institutions Act, 1993, against the defendants for recovery of Rs.1,03,42,309.30p (Rupees One Crore Three Lacs Forty Two Thousand Three Hundred Nine And Paise Thirty Only). The Original Application has been filed through Sh. Praminder Kumar, Chief Manager o f the applicant, who is competent to institute the Original Application vide General Power of Attorney dated 30.07.2010, which is

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Annexure A1 to this OA.

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The brief facts of the OA are that the defendants had approached the applicant for grant of Car Loan of Rs.7.89 Lacs and further for Overdraft Limit of Rs.64.00 Lacs and Term Loan of Rs.20.60 Lacs.

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The applicant sanctioned Car Loan of Rs.7.89 Lacs vide Credit Arrangement Letter dated 26.03.2021, which is Annexure A2 to this OA and further sanctioned the OD Limit of Rs.64.00 Lacs and Term Loan of Rs.20.60 Lacs vide Sanction Letter dated 15.03.2021, which is Annexure A7 to this OA and the terms and conditions were duly accepted by the defendants.

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Defendant No.3 had mortgaged her immovable property i.e.

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a. One plot no. 17-B measuring 125 Sq. yards situated at Village Taraf Burrha, Abadi Gandhi Colony, Gurcharan Park, Tehsil & Distt. Ludhiana vide Equitable Mortgage of Sale Deed bearing vasika no. 15800 dated 20.02.2015 and Memorandum of Deposit of Title Deed dated 01.01.2021 , which are Annexure A9 & A10 to this OA.

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b. Defendant no.1 had hypothecated its Vehicle namely Maruti Suzuki Brezza VXI bearing Engine No.K15BN4125785, Chassis No.MA3NYFJ1SMC759562 and Registration No. PB10HP0838 vide Registration Certificate, which is Annexure A4 to this OA

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3 OA NO.162-2025 KARNATAKA BANK LIMITED VS M/S HARI OM TRADING COMPANY AND OTHERS

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Documents executed:- Hypothecation Agreement Deed and dated 30.03.2021, which is Annexure A3 to this OA; Hypothecation Agreement and Term loan Agreement both dated 29.12.2021, which are Annexure A5 & A6 to this OA;; Hypothecation Agreement Deed dated 18.03.2023, which is Annexure A8 to this OA; Letter of Authority, Acknowledgement both dated 18.03.2023, which are Annexure A11 & A12 to this OA; Demand notice dated 18.06.2024, which is Annexure A13 to this OA; Accounts statements along with Bank Certificate dated 21.12.2024, which are Annexures A14 to A16 to this OA.

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The loan accounts became irregular and were classified as NPA and after adjusting debit and credit entries in both the loan accounts there was a debit of Rs.1,03,42,309.30p, which is recoverable and the defendants were served recall notices but they did not repay the outstanding amount, therefore, the applicant requested to accept the application and to issue Recovery Certificate accordingly.

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The defendants were served notices to appear before this Tribunal but no one appeared on behalf of defendants and they were proceeded ex-parte on 12.06.2025.

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In support of the OA, affidavit of Sh. Praminder Kumar, Chief Manager, Karnataka Bank has been filed. 8. Heard arguments and perused record. 9. It was argued by learned proxy counsel that in view of the documentary evidence brought on record which had gone unrebutted, the applicant had proved its case. From the perusal of all the Annexures A1 to A16 to this OA, it is proved that the defendants approached applicant for availing of the loan facilities which were granted to them and for that they had executed all the relevant documents in favour of the bank. The defendants failed to pay back the loan as per terms and conditions of the agreement between the parties. Subsequently, accounts of the defendants were classified as

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4 OA NO.162-2025 KARNATAKA BANK LIMITED VS M/S HARI OM TRADING COMPANY AND OTHERS

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NPA. From the documentary evidence brought on record, it is proved that applicant is entitled to recover a sum of Rs.1,03,42,309.30p (Rupees One Crore Three Lacs Forty Two Thousand Three Hundred Nine And Paise Thirty Only) along with interest from the defendants, jointly and severally, from the date of filing of the present Original Application till realization of the account.

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In so far as pendent elite and future rate of interest is concerned, the applicant in relief clause has claimed interest @9.00%p.a. in OD Limit and interest @11.00%p.a. in Term Loan with monthly rests from 22.12.2024 till the realization.

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The Tribunal is of the considered opinion that sometimes in appropriate cases the prerogative of mercy is the brightest jewel in the crown of the Judge. Keeping in view the facts and circumstances of the instant case including nature of the mortgaged property, undertaking of the defendants, quantum of loan and prevalent market rates of interest which have gone drastically downhill in yester years, while exercising the discretion vested in this Tribunal, this Tribunal deems it just and appropriate to grant uniform simple interest @08.00%p.a. in both the loan accounts from the date of filing of the OA till realization of the amount ordered vide this final order. It is ordered accordingly. 11. In the result, the application is allowed declaring that the defendants are liable to pay to the applicant a total sum of Rs.1,03,42,309.30p (Rupees One Crore Three Lacs Forty Two Thousand Three Hundred Nine And Paise Thirty Only) jointly and severally, with costs, current and future simple interest @08.00%p.a. in both the loan accounts from the date of filing of OA till the date of realization of the amount. Accordingly, the applicant shall be entitled to recover aforesaid amount from the sale of hypothecated/mortgaged properties of the defendants in execution proceedings if not sold earlier under the provisions of the SARFAESI Act, 2002. If the dues of the applicant still remain unsatisfied, it shall be entitled to recover the

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5 OA NO.162-2025 KARNATAKA BANK LIMITED VS M/S HARI OM TRADING COMPANY AND OTHERS

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same by attachment and sale of personal assets of the defendants. The applicant is at liberty to enforce the claim through due process of law.

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Any other application pending stands disposed of .

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Issue Recovery Certificate accordingly.

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Parties to appear before Learned Recovery Officer of this Tribunal on 10.07.2025.

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Copy of this order be given dasti to the applicant and be sent to defendants through registered/speed post and this order be also uploaded on the official website of this Tribunal and record be consigned.

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Pronounced by me in the open Tribunal .

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Dated: 16.06.2025.

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(MRIDULESH KUMAR SINGH) Presiding Officer, DRT-III, Chandigarh

Karnataka Bank Limited v. M/S Hari Om Trading Company and Others

Case brief

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Karnataka Bank Limited v. M/S Hari Om Trading Company and Others

Case brief

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